• Revenue Growth: Total sales increased by 7% in Q4 and 2% for the full year.
• EBITA Margin: Stable at 14.6% for Q4; underlying margin excluding one-offs was 14.3%.
• Cash Flow: Record-high operational cash flow of SEK1.6 billion in Q4.
• Acquisitions: 16 companies acquired in 2024 with an annual turnover of SEK1.6 billion; four acquisitions completed in Q4.
• Dividend Proposal: SEK3.00 per share, up from SEK2.85 last year.
• Gross Margin: Improved to 35.7% in Q4; 35% for the full year compared to 34.6% last year.
• Net Debt to EBITDA Ratio: Stable at 1.4 at the end of the year.
• Earnings Per Share: Increased by 3% in Q4 to SEK2.01; down 4% for the full year to SEK7.86.
• Order Intake: Organic order intake decreased by 5% in Q4.
• Geographic Sales Performance: Strong sales growth in Denmark and Norway; weaker in Finland.

• Warning! GuruFocus has detected 6 Warning Sign with FRA:I1M.

Release Date: January 30, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Indutrade AB (FRA:I1M) reported a successful 2024 with solid financial performance, achieving a 2% growth in orders and net sales.
• The company maintained a strong EBITA margin of 14.6%, with acquisitions contributing positively to the margin.
• Indutrade AB completed 16 acquisitions in 2024, with a total annual turnover of SEK1.6 billion, enhancing its strategic platform.
• The company achieved a record-high operational cash flow of SEK1.6 billion in Q4, indicating strong financial health.
• Indutrade AB's climate targets were validated by the Science Based Target initiative, showcasing its commitment to sustainability.

Negative Points

• Organic order intake decreased by 5% in Q4, primarily due to a large order in the previous year, affecting comparisons.
• The Infrastructure & Construction segment continued to face a generally weaker demand environment.
• The EBITA margin for the full year decreased to 14.4% from 15% last year, partly due to higher expenses linked to inflation and growth initiatives.
• The company experienced a decline in earnings per share by 4% on a full-year basis.
• The Industrial & Engineering segment faced challenges with organic sales decline and higher costs, impacting profitability.

Q & A Highlights

Q: Can you elaborate on the underlying demand in the Life Science segment, particularly regarding single-use products and potential future orders from Novo Nordisk? A: The Life Science area remains promising, with organic order intake well above 5% when excluding a large one-time order. Single-use products are seeing normalized inventory levels and increased order intake, which began in Q4. We anticipate continued strong business opportunities with Novo Nordisk, not just for 2025 but beyond.

Q: With the recent margin drop in Life Science, do you foresee a positive mix effect that might offset it? A: We expect the EBITA margin in Life Science to trend upwards. While previous quarters had exceptionally high margins, we anticipate improvement from the Q4 levels.

Q: Can you explain the increase in selling expenses and the impact of cost inflation? A: The underlying expense level increased by around 3%, driven by inflation and strategic growth initiatives in certain companies. Some restructuring costs were incurred, which will yield benefits this year. We are supporting growth-oriented companies to increase resources and activity levels.

Q: How do you view the current market situation in Infrastructure & Construction, and what are your expectations? A: The market activity level is lower than previously, with potential improvements expected by summertime. Despite the weak market, our companies are making progress in efficiency, and we anticipate a more profitable year in 2025 compared to 2024.

Q: Regarding the new Group structure, has it met your expectations after the first year? A: The new structure has been positively received and aligns with our expectations. It has already generated more internally-led acquisitions, which are beneficial due to exclusivity and reduced risk. We expect further benefits in the coming years.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.